AOS1 The business Idea

Question 1

What is entrepreneurship?

Answer 1

starting and operating a business in response to opportunities, assuming all the risks, in hopes of making profit.

Question 2

What is Innovation & enterprise

Answer 2

• Adding onto an existing product or creating a new product and improvement to fit.

Question 3

What is shared vision?

Answer 3

Having a clear understanding and hope on what your business will look like in the future.

Question 4

What is initiative?

Answer 4

Taking the first step in a series of actions/ processes to get your business running.

Question 5

What is Financial independence

Answer 5

• Having the money to support a lifestyle without having to be employed or dependent on others.
• motivation for starting a business

Question 6

What is personal independence

Answer 6

Having the ability to make choices that affect what you do every day.

• motivation for starting a business

Question 7

4 motivations of starting a business?

Answer 7

• financial independence
• personal independence
• to fulfil a market need
• to make a profit

Question 8

What is a social need

Answer 8

to improve the world/community with goods and services

Question 9

What is a market need

Answer 9

To fulfil a market with goods and services that aren’t readily in the market

Question 10

Benefits of owning a business

Answer 10

• Being your own boss (independence)
• Possibility of making a profit
• Overcoming employment

Question 11

Limitations of owning a business

Answer 11

• Risk of business failing
• Hardwork and long hours

Question 12

What is a business manager purpose, characteristics

Answer 12

-manages a business on a day-to-day basis to make a profit.
They must show:
- leadership, organizational skills, communication skills, ability to start and see through long term projects.

Question 13

What is an entrepreneur, and their characteristics?

Answer 13

• individuals who seize opportunities, assuming all the risks in hopes to make a profit.
• They will demonstrate:
• initiative
• innovation & enterprise
• having a vision
• ability to take measured risks.

Question 14

Innovation as a source for business opportunity

Answer 14

Ideas for new products, improvements to existing products, will often provide the opportunity for the establishment of a new business

Question 15

Market opportunities as a source for business opportunity

Answer 15

A business owner may be able to identify opportunities from changes in markets and take advantage
of them as potential business ideas.

Question 16

Changing customer needs as a source for business opportunity

Answer 16

A person can find an opportunity in business by focusing on meeting changing needs like, changing tastes and fashion, changing incomes and changing population

Question 17

Research and development as a source for business opportunity

Answer 17

Can allow a person to
develop new products in response to the actions of any competitors, or to improve existing products so that they become superior to those of competitors.

Question 18

Technology development as a source for business opportunity

Answer 18

Enables innovation, improving efficiency, expanding market reach, and facilitating the delivery of new products and services.

Question 19

Global markets as a source for business opportunity

Answer 19

Trade between businesses and customers worldwide creates opportunities for entrepreneurs because they can reach more customers and potentially generate more sales.

A business will need to consider whether their idea will work in an overseas country however.

Question 20

What is a goal and it’s importance

Answer 20

• What a business is expected to achieve overtime
• important because it will give you a clear focus, and motivate you to set targets for the business and work towards it.

Question 21

What are some financial goals?

Answer 21

• Making/maximizing profit: Profit is what is left after business expenses have been deducted from money earned.
• Expanding the business: Most businesses want to grow, this can be achieved by opening more outlets, employing, staff, new projects/products.
• Increasing sales: Can be done by deciding to sell products at lower price so consumers purchase more, or clever marketing.

Question 22

What are some social goals?

Answer 22

-Community services: Many business owners will want to financially support educational, cultural, sporting and welfare businesses.

• Social justice: A potential business owner may be concerned for social justice, so they will set policies to ensure the community is treated equally and fairly.
• Ecological sustainability: The social conscience of responsible business owners leads them to adopt policies of sustainability, eg recycling

Question 23

What is a personal goal

Answer 23

This could be like higher income, and improved financial security. Often the nature and operation of the new business will tend to reflect their personal goals, so it varies.

Question 24

What is decision making and why is it important.

Answer 24

making choices by identifying and gathering relevant information and assessing alternative resolutions.
- important because it is essential to creating and developing a business idea.

Question 25

Decision making process

Answer 25

step 1: develop goals
step 2: outline the facts
step 3: identify alternative solutions
step 4: analyse the alternatives
step 5: choose one alternative and implement it.

Question 26

What is a business concept development and what can be the sources

Answer 26

• The core activities of a business, their values of goods and services it provides, and their target market. These may come from a person’s own experiences, listening to others, and gap in the market.

Question 27

The relationship between business opportunities and business concept development

Answer 27

The development of the business concept is when the owner takes an idea that has arisen from an assessment of possible opportunities, and begins to turn it into an actual business.

Question 28

copy right

Answer 28

protection of original works etc, writing, music, art, films

Question 29

Trademark

Answer 29

protection over a letter, word, phrase, logo picture, or aspect of packaging.

Question 30

Patent

Answer 30

protection for any device, substance, method or process that is inventive

Question 31

design rights

Answer 31

protection of visual appearance of a product, eg logo, branding

Question 32

domain

Answer 32

An owner can register a domain name so that nobody else can register it (website)

Question 33

What is market research

Answer 33

Collecting, analysing data about customers, competitors and the business environment to improve market effectiveness.

Question 34

The three steps to market research

Answer 34

I: Identify what is needed to make decisions about the business
G: gathering relevant info from appropiate sources eg, surverys
A: Analysing and interpreting results to extract clear info that will help with decision making.

Question 35

What is initial feasibility studies

Answer 35

-Cacluating a business idea’s potential of sucess.

Question 36

The five elements of feasibility

Answer 36

1. Assesment of the market: analysing the level of demand for a product, potential customers and competitors
2. Considerations of the operations: describing the product that will be sold and resources needed for it
3. analysis of commerical feasibility: how much money will be needed to start operations
4. appraisal of potential owner’s management abilities
   qualities required to be a sucessful business owner
5. understanding whether others have tried this idea
   if they failed why?

Question 37

The importance of market research and feasibility.

Answer 37

It will give you an insight and help you make smart decisions, this way you can increase your chance of success.

Question 38

How does a business contribute to economic wellbeing?

Answer 38

• Export earnings: when things are exported out the nation money comes in.
• Economic growth: businesses keep the economy healthy by providing jobs that generate income
• Employment and Tax revenue: when business sells their products/services, money is made, which will be used to pay taxes. Taxes contribute to things like schools, roads.
  -Research and development: Companies invest in R&D to try make new ideas, improvements to products, new products= more sales=money=healthy economy.

Question 39

How does a business contribute to social wellbeing?

Answer 39

Innovations: Innovation creates a significant impact and improvement on society’s life and development.
Career and social wellbeing: Businesses provide jobs that give a sense of purpose and fulfilment, increasing the quality of life.
Cooperate social responsibility:
Businesses will look after the community by conducting activities like donating, and supporting charitable causes.

Question 40

How do government invests in r&d foster a culture of business innovation and entrepreneurship.

Answer 40

• grants and funding to support r&d activites, which encourage people to invest in innovation
  -tax incentives, which provide tax credits/deductions for businesses who engage in r&d activities, which reduces loss of innovation and encourages businesses to allocate resources towards r&d

Question 41

How do council grants foster a culture of business innovation and entrepreneurship.

Answer 41

Local councils will provide grants and funding programs, with the objective to encourage establishment and growth of innovative, creative and sustainable businesses.

Question 42

How do school-based edu programs foster a culture of business innovation and entrepreneurship.

Answer 42

• students gain knowledge on entrepreneurship, meaning awareness is spread
• develops a skilled work forced, capable of driving innovation

Question 43

How do business startup hubs foster a culture of business innovation and entrepreneurship.

Answer 43

• provides support from mentorships, network opportunities, financial assistance and navigation in r&d